(a) This article shall apply to all contracts, including
amendments, entered into by any state agency for services to be
rendered to the state, whether or not the services involve the
furnishing or use of equipment, materials, or supplies or are
performed by an independent contractor. Except as provided in
Sections 10295.6 and 10351, and paragraphs (8) and (9) of subdivision
(b) of Section 10340, all contracts subject to this article are of
no effect unless and until approved by the department. Each contract
shall be transmitted with all papers, estimates, and recommendations
concerning it to the department and, if approved by the department,
shall be effective from the date of approval. This article shall
apply to any state agency that by general or specific statute is
expressly or impliedly authorized to enter into the transactions
referred to in this section. This article shall not apply to
contracts for the construction, alteration, improvement, repair, or
maintenance of real or personal property, contracts for services
subject to Chapter 10 (commencing with Section 4525) of Division 5 of
Title 1 of the Government Code, to contracts that are listed as
exceptions in Section 10295, contracts of less than five thousand
dollars ($5,000) in amount, contracts of less than five thousand
dollars ($5,000) where only per diem or travel expenses, or a
combination thereof, are to be paid, contracts between state
agencies, or contracts between a state agency and local agency or
federal agency.
(b) In exercising its authority under this article with respect to
contracts for the services of legal counsel, other than the Attorney
General, entered into by any state agency that is subject to Section
11042 or Section 11043 of the Government Code, the department, as a
condition of approval of the contract, shall require the state agency
to demonstrate that the consent of the Attorney General to the
employment of the other counsel has been granted pursuant to Section
11040 of the Government Code. This consent shall not be construed in
a manner that would authorize the Attorney General to establish a
separate program for reviewing and approving contracts in the place
of, or in addition to, the program administered by the department
pursuant to this article.
(c) Until January 1, 2001, the department shall maintain a list of
contracts approved pursuant to subdivision (b). This list shall be
filed quarterly with the Senate Committee on Budget and Fiscal Review
and the Assembly Committee on Budget. The list shall be limited to
contracts with a consideration in excess of twenty thousand dollars
($20,000) during the life of the contract and shall include
sufficient information to identify the provider of legal services,
the length of each contract, applicable hourly rates, and the need
for the services. The department shall add a contract that meets
these conditions to the list within 10 days after approval. A copy of
the list shall be made available to any requester. The department
may charge a fee to cover the cost of supplying the list as provided
in Section 6253 of the Government Code.
(d) Contracts subject to the approval of the department shall also
have the department's approval for a modification or amendment
thereto, with the following exceptions:
(1) An amendment to a contract that only extends the original time
for completion of performance for a period of one year or less is
exempt. If the original contract was subject to approval by the
department, one fully executed copy including transmittal document,
explaining the reason for the extension, shall be sent to the legal
office of the department. A contract may only be amended once under
this exemption.
(2) Contracts let or awarded on the basis of a law requiring
competitive bidding may be modified or amended only if the contract
so provides or if authorized by the law requiring competitive
bidding.
(3) If an amendment to a contract has the effect of giving the
contract as amended an increase in monetary amount, or an agreement
by the state to indemnify or save harmless any person, the amendment
shall be approved by the department.

(a) "Consulting services contract," as used in this
article, means services that do all of the following:
(1) Are of an advisory nature.
(2) Provide a recommended course of action or personal expertise.
(3) Have an end product that is basically a transmittal of
information either written or verbal and that is related to the
governmental functions of state agency administration and management
and program management or innovation.
(4) Are obtained by awarding a contract, a grant, or any other
payment of funds for services of the above type.
The product may include anything from answers to specific
questions to design of a system or plan, and includes workshops,
seminars, retreats, and conferences for which paid expertise is
retained by contract.
(b) "Consulting services contract" does not include any of the
following:
(1) Contracts between a state agency and the federal government.
(2) Contracts with local agencies, as defined in Section 2211 of
the Revenue and Taxation Code, to subvene federal funds for which no
matching state funds are required.
(c) The following consulting services contracts are exempt from
the advertising and bidding requirements of this article:
(1) Contracts that are temporary or time-limited appointments to a
nontesting civil service classification for the purpose of meeting a
time-limited employment need. Selection and compensation for these
appointments shall be made in accordance with state civil service
requirements. Payment under a consulting service contract may be on
the basis of each hour or day devoted to the task or in one lump sum
for the end product.
(2) Contracts that can only be performed by a public entity as
defined in subdivision (b) of Section 605 of the Unemployment
Insurance Code.
(3) Contracts solely for the purpose of obtaining expert witnesses
for litigation.
(4) Contracts for legal defense, legal advice, or legal services.
(5) Contracts in an amount of less than five thousand dollars
($5,000).
(6) Contracts entered into pursuant to Section 14838.5 of the
Government Code.

"State agency," as used in this article, means every state
office, department, division, bureau, board, or commission, but does
not include the Legislature, the courts, or any agency in the
judicial branch of government.

The Department of Finance may establish those controls over
approval of contracts by the department as are necessary to assure
that approval is consistent with program and budgetary determinations
of the Department of Finance. The controls established under this
section shall not be constructed in a fashion or be construed in a
manner which would authorize the Department of Finance to establish a
separate program for reviewing and approving contracts in the place
of, or in addition to, the program administered by the department
pursuant to this article. The Department of Finance, when it has
reason to believe that a proposed contract is not in compliance with
its program and budgetary determinations, may direct a state agency
to transmit the contract to it for review. It is the intent of the
Legislature, however, that any review of this type shall be
restricted to individual contracts and shall occur only if no
alternative course of action satisfactory to the Department of
Finance is available.

(a) The State Personnel Board may establish such standards
and controls over approval of contracts by the Department of General
Services as are necessary to assure that the approval is consistent
with the merit employment principles and requirements contained in
Article VII of the California Constitution. The substantive
provisions of the standards shall be established at the discretion of
the State Personnel Board. The specific procedures for contract
review pursuant to such standards shall be established jointly by the
board and the department.
It is the intent of the Legislature that except as provided in
this section, the standards and controls established under this
subdivision shall not be constructed in such a fashion or construed
in such a manner as to authorize the State Personnel Board to
establish a separate program for reviewing and approving each and
every contract in the place of, or in addition to, the program
administered by the Department of General Services pursuant to this
article. The State Personnel Board may, when it has reason to believe
that a proposed contract is not in compliance with the provisions of
Section 19130 of the Government Code, and shall, when requested to
do so by an employee organization representing state employees,
direct a state agency to transmit the contract to it for review.
(b) The State Personnel Board shall direct any state agency to
transmit to it for review any contract proposed or executed pursuant
to subdivision (a) of Section 19130 of the Government Code, if the
review has been requested by an employee organization notified
pursuant to Section 19131 of the Government Code. The review shall
occur prior to any review conducted by the Department of General
Services. The board shall restrict its review to the question as to
whether the contract complies with the provisions of subdivision (a)
of Section 19130 of the Government Code and any additional standards
and controls established pursuant to subdivision (a) of this section.
The board may disapprove the contract only if it determines that the
contract does not comply.
The board shall delegate the review of such a contract to the
executive officer of the board. Within 15 days of its receipt, the
executive officer shall notify the employee organization which
requested the review whether he or she intends to approve or
disapprove it. If the employee organization requests it, the
executive officer shall grant the employee organization the
opportunity to present its case against the contract and the reasons
why the contract should be referred to the board for a hearing. Upon
a showing of good cause by the employee organization, the executive
officer shall schedule the disputed contract for a hearing before the
board for the purpose of receiving evidence and hearing arguments
concerning the propriety of the disputed contract. In any case, the
executive officer shall approve or disapprove the contract or refer
it to the board for a hearing within 30 days of its receipt. The
reasons for a decision by the executive officer, or the board,
approving or disapproving the contract shall be stated in writing.
(c) A contract proposed or executed pursuant to subdivision (b) of
Section 19130 of the Government Code shall be reviewed by the State
Personnel Board if the board receives a request to conduct such a
review from an employee organization representing state employees.
Any such review shall be restricted to the question as to whether the
contract complies with the provisions of subdivision (b) of Section
19130 of the Government Code. The board shall delegate the review of
such a contract to the executive officer of the board. If the
employee organization requests it, the executive officer shall grant
the employee organization the opportunity to present its case against
the contract and the reasons why the contract should be referred to
the board for a hearing. Upon a showing of good cause by the employee
organization, the executive officer shall schedule the disputed
contract for a hearing before the board for the purpose of receiving
evidence and hearing arguments concerning the propriety of the
disputed contract. The executive officer shall approve or disapprove
the contract or refer it to the board for a hearing within 30 days of
its receipt. The reasons for the decision by the executive officer,
or the board, approving or disapproving the contract shall be stated
in writing.
(d) Contracts subject to State Personnel Board review under this
section shall not become effective unless and until approval is
granted.

(a) Subject to the provisions of Section 10348, no state
agency shall draft, or cause to be drafted, any invitation to bid or
request for proposal, in connection with the awarding of a contract,
in a manner that limits the bidding directly or indirectly to any one
bidder.
(b) Any contract awarded in violation of subdivision (a) shall be
void.

(a) Except as provided by subdivision (b), state agencies
shall secure at least three competitive bids or proposals for each
contract.
(b) Three competitive bids or proposals are not required in any of
the following cases:
(1) In cases of emergency where a contract is necessary for the
immediate preservation of the public health, welfare, or safety, or
protection of state property.
(2) When the agency awarding the contract has advertised the
contract in the California State Contracts Register and has solicited
all potential contractors known to the agency, but has received less
than three bids or proposals.
(3) (A) The contract is with another state agency, a local
governmental entity, an auxiliary organization of the California
State University, an auxiliary organization of a California community
college, a foundation organized to support the Board of Governors of
the California Community Colleges, or an auxiliary organization of
the Student Aid Commission established pursuant to Section 69522 of
the Education Code. These contracts, however, may not be used to
circumvent the competitive bidding requirements of this article.
(B) Notwithstanding subparagraph (A), until January 1, 2019, an
interagency agreement that is in effect pursuant to the amount
appropriated to the Office of Planning and Research under Item
0650-001-0001 of the Budget Act of 2014, including a contract between
the Office of Planning and Research, the Regents of the University
of California, or an auxiliary organization of the California State
University, may include a subcontract not subject to any competitive
bidding requirements of this article for the limited purpose of
researching or developing precision medicine.
(4) The contract meets the conditions prescribed by the department
pursuant to subdivision (a) of Section 10348.
(5) The contract has been awarded without advertising and calling
for bids pursuant to Section 19404 of the Welfare and Institutions
Code.
(6) Contracts entered into pursuant to Section 14838.5 of the
Government Code.
(7) Contracts for the development, maintenance, administration, or
use of licensing or proficiency testing examinations.
(8) The contract is for services for the operation, maintenance,
repair, or replacement of specialized equipment at facilities of the
State Water Resources Development System, as defined in Section 12931
of the Water Code, and meets the conditions established by the
Department of Water Resources for those contracts.
(9) The contract meets the conditions prescribed by the Department
of Water Resources for contracts subject to Section 10295.6.
(10) Contracts entered into by the Commission on Peace Officer
Standards and Training or the Office of Emergency Services solely for
the services of instructors for public safety training. For the
purpose of this paragraph, "public safety training" includes, but is
not limited to, training related to law enforcement, emergency
medical response, emergency volunteers, and fire responders.
(c) Any agency which has received less than three bids or
proposals on a contract shall document, in a manner prescribed by the
department, the names and addresses of the firms or individuals it
solicited for bids or proposals.

Whenever a contract subject to the provisions of this
article is awarded under a procedure which provides for competitive
bidding, the bids shall be publicly opened at the time stated in the
invitation for bids and the dollar amount of each bid shall be read.
No bids shall be considered which have not been received at the
place, and prior to the closing time for bids, stated in the
invitation for bids.

(a) Contracts subject to the provisions of this article may
be awarded under a procedure that makes use of a request for
proposal. State agencies that use this procedure shall include in the
request for proposal a clear, precise description of the work to be
performed or services to be provided, a description of the format
that proposals shall follow and the elements they shall contain, the
standards the agency will use in evaluating proposals, the date on
which proposals are due and the timetable the agency will follow in
reviewing and evaluating them.
State agencies that use a procedure that makes use of a request
for proposal shall evaluate proposals and award contracts in
accordance with the provisions of subdivision (b) or (c). No
proposals shall be considered that have not been received at the
place, and prior to the closing time, stated in the request for
proposal.
(b) State agencies that use the evaluation and selection procedure
in this subdivision shall include in the request for proposal, in
addition to the information required by subdivision (a), a
requirement that bidders submit their proposals with the bid price
and all cost information in a separate, sealed envelope.
Proposals shall be evaluated and the contract awarded in the
following manner:
(1) All proposals received shall be reviewed to determine those
that meet the format requirements and the standards specified in the
request for proposal.
(2) The sealed envelopes containing the bid price and cost
information for those proposals that meet the format requirements and
standards shall then be publicly opened and read.
(3) The contract shall be awarded to the lowest responsible bidder
meeting the standards.
(c) State agencies that use the evaluation and selection procedure
in this subdivision shall include in the request for proposal, in
addition to the information required by subdivision (a), a
description of the methods that will be used in evaluating and
scoring the proposals. Any evaluation and scoring method shall ensure
that substantial weight in relationship to all other criteria
utilized shall be given to the contract price proposed by the bidder.
Proposals shall be evaluated and the contract awarded in the
following manner:
(1) All proposals shall be reviewed to determine which meet the
format requirements specified in the request for proposal.
(2) All proposals meeting the formal requirements shall then be
submitted to an agency evaluation committee which shall evaluate and
score the proposals using the methods specified in the request for
proposal. All proposals and all evaluation and scoring sheets shall
be available for public inspection at the conclusion of the committee
scoring process.
(3) The contract shall be awarded to the bidder whose proposal is
given the highest score by the evaluation committee.
(d) Nothing in this section shall require the awarding of the
contract if no proposals are received containing bids offering a
contract price that in the opinion of the state agency is a
reasonable price.
(e) (1) In addition to the information required by subdivision
(a), a request for proposal for a contract that involves the
furnishing of equipment, materials, or supplies shall contain the
following statement:
"It is unlawful for any person engaged in business within this
state to sell or use any article or product as a "loss leader" as
defined in Section 17030 of the Business and Professions Code."
(2) On and after March 31, 2010, and until December 31, 2011, if a
request for proposal does not contain the statement required by
paragraph (1), the awarding agency shall report this error to the
department within 30 days of the date the awarding agency discovers
this error.
(3) The department shall post in the State Contracting Manual
instructions for including the statement required by paragraph (1) in
all affected contracts.
(4) The statement required by paragraph (1) shall be deemed to be
part of a request for proposal even if the statement is inadvertently
omitted from the request for proposal.

The Department of Human Resources, with respect to
contracts it enters into for state employees for employee benefits,
occupational health and safety, training services, or any combination
thereof, shall provide all qualified bidders with a fair opportunity
to enter the bidding process, therefore stimulating competition in a
manner conducive to sound fiscal practices. The Department of Human
Resources shall make available to any member of the public its
guidelines for awarding these contracts, and to the extent feasible,
implement the objectives set forth in Section 10351.

(a) Whenever a contract is awarded under a procedure
providing for competitive bidding, but the contract is not to be
awarded to the low bidder, the low bidder shall be given notice five
working days prior to the award of the contract by telegram,
electronic facsimile transmission, overnight courier, Internet
transmission, or personal delivery.
(1) Upon written request by any bidder who has submitted a bid,
notice of the proposed award shall be posted in a place accessible by
the general public, including any Internet site identified in the
invitation for bids at least five working days prior to awarding the
contract.
(2) If, prior to the award, any bidder files a protest with the
awarding state agency and the department protesting the award of the
contract on the grounds that he or she is the lowest responsible
bidder meeting the specifications for the contract, the contract
shall not be awarded until either the protest has been withdrawn or
the department has decided the matter.
(3) Within five days after filing the protest, the protesting
bidder shall file with the department and the awarding state agency a
full and complete written statement specifying the grounds for the
protest.
(b) Contracts awarded under the provisions of Section 10344 shall
be awarded only after a notice of the proposed award has been posted
in a place accessible by the general public, including any Internet
site identified in the request for proposal, for five working days.
(1) If, prior to the award, any bidder files a protest with the
awarding state agency and the department against the awarding of the
contract, the contract shall not be awarded until either the protest
has been withdrawn or the department has decided the matter.
(2) Within five days after filing the protest, the protesting
bidder shall file with the department and awarding state agency a
full and complete written statement specifying the grounds for the
protest. Protests shall be limited to the following grounds:
(A) The state agency failed to follow the procedures specified in
either subdivision (b) or (c) of Section 10344.
(B) The state agency failed to apply correctly the standards for
reviewing the format requirements or evaluating the proposals as
specified in the request for proposal.
(C) The state agency used the evaluation and selection procedure
in subdivision (b) of Section 10344, but is proposing to award the
contract to a bidder other than the lowest responsible bidder.
(D) The state agency used the evaluation and selection procedure
in subdivision (c) of Section 10344, but failed to follow the methods
for evaluating and scoring the proposals specified in the request
for proposal.
(E) The state agency used the evaluation and selection procedure
in subdivision (c) of Section 10344, but is proposing to award the
contract to a bidder other than the bidder given the highest score by
the state agency evaluation committee.
(c) The department shall establish written procedures for deciding
protests under this section.

Contracts may provide for progress payments to contractors
for work performed or costs incurred in the performance of the
contract. Not less than 10 percent of the contract amount shall be
withheld pending final completion of the contract. However, if the
contract consists of the performance of separate and distinct tasks,
then any funds so withheld with regard to a particular task may be
paid upon completion of that task.
No state agency shall make progress payments on a contract unless
it first has established procedures, approved by the department,
which will ensure that the work or services contracted are being
delivered in accordance with the contract.

The department shall prescribe the following:
(a) The conditions under which a contract may be awarded without
competition, and the methods and criteria which shall be used in
determining the reasonableness of contract costs when a contract is
awarded without competition.
(b) Any special requirements for evaluating multiple-year
contracts which the department deems necessary to protect the
financial interest of the state.
(c) For contracts of less than twenty thousand dollars ($20,000),
the conditions under which some or all of the provisions of this
article may be waived in order to assist agencies in obtaining
services and consultant services in an efficient and timely manner.

Each state agency shall designate at least one currently
existing person or position within the state agency as a contract
manager. Every contract manager shall have knowledge of legal
contractual arrangements.

The Department of Human Resources shall establish a program
for training state agency contracting personnel in contract
administration and contract management. The cost of training state
agency contracting personnel shall be paid by state agencies out of
their appropriations for personnel training. The Department of Human
Resources shall, prior to establishing the training program required
by this section, consult with the department concerning the training
curriculum and the development of a training manual on contract
administration.

(a) The department shall exempt from its approval contracts
under one hundred fifty thousand dollars ($150,000) that any state
agency awards if the state agency does all of the following:
(1) Designates an agency officer as responsible and directly
accountable for the agency's contracting program.
(2) Establishes written policies and procedures and a management
system that will ensure the state agency's contracting activities
comply with applicable provisions of law and regulations and that it
has demonstrated the ability to carry out these policies and
procedures and to implement the management system.
(3) Establishes a plan for ensuring that contracting personnel are
adequately trained in contract administration and contract
management.
(4) Conducts an audit every two years of the contracting program
and reports to the department as it may require.
(5) Establishes procedures for reporting to the department and the
Legislature on such contracts as the Legislature may require in the
Budget Act.
(b) Any state agency may request the department to exempt from its
approval classes or types of contracts under this section. When the
department receives a request but refuses to grant the exemption, it
shall state in writing the reasons for the refusal. It is the intent
of the Legislature that the department shall actively implement the
provisions of this section and shall exempt from its approval as wide
a range of classes or types of contracts as is consistent with
proper administrative controls and the best interests of the state.

(a) The department shall conduct a quality control review of
the audit of the contracting program required by Section 10351.
(b) The exemption provided by Section 10351 may be withdrawn by
the department at any time that the department finds that the state
agency to which the exemption has been granted is out of compliance
with the requirements of Section 10351. In any case where the
exemption is withdrawn, the department shall state in writing, the
reasons for the withdrawal and shall specify the actions the state
agency is required to take before the exemption again may be
requested.

A contract in an amount in excess of two hundred thousand
dollars ($200,000) that is governed by the provisions of this part
shall contain a provision requiring the contractor to give priority
consideration in filling vacancies in positions funded by the
contract to qualified recipients of aid under Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, in accordance with Article 3.9 (commencing with
Section 11349) of Chapter 2 of Part 3 of Division 9 of the Welfare
and Institutions Code.
This section and Article 3.9 (commencing with Section 11349) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code shall not be applicable to any contracts for a project as
defined in Section 10105.
This section and Article 3.9 (commencing with Section 11349) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code shall not be construed so as to do any of the following:
(a) Interfere with or create a violation of the terms of valid
collective bargaining agreements.
(b) Require the contractor to hire an unqualified recipient of
aid.
(c) Interfere with, or create a violation of, any federal
affirmative action obligation of a contractor for hiring disabled
veterans or veterans of the Vietnam era.
(d) Interfere with, or create a violation of, the requirements of
Section 12990 of the Government Code.
If waivers are deemed necessary to implement this section and
Article 3.9 (commencing with Section 11349) of Chapter 2 of Part 3 of
Division 9 of the Welfare and Institutions Code, and if the State
Department of Social Services has not obtained these waivers from the
federal government by March 1, 1985, the department shall report on
the barriers to the waivers and the expected date of waiver approval.
This section is not applicable to consulting services contracts.

(a) Any contract for legal services shall contain the
following provisions:
(1) The contractor shall agree to adhere to legal cost and billing
guidelines designated by the state agency.
(2) The contractor shall adhere to litigation plans designated by
the state agency.
(3) The contractor shall adhere to case phasing of activities
designated by the state agency.
(4) The contractor shall submit and adhere to legal budgets as
designated by the state agency.
(5) The contractor shall maintain legal malpractice insurance in
an amount not less than the amount designated by the state agency.
(6) The contractor shall submit to legal bill audits and law firm
audits if requested by the state agency. The audits may be conducted
by employees or designees of the state agency or by any legal cost
control providers retained by the state agency for that purpose.
(b) A contractor may be required to submit to a legal cost and
utilization review, as determined by the state agency.
(c) As used in this section, the following definitions apply:
(1) "Legal bill audits," means an evaluation and analysis of the
reasonableness of particular legal bills submitted to a state agency
for reimbursement.
(2) "Law firm audit," means a review of law firm files applicable
to legal services provided to a state agency for a particular time
period.
(3) "Legal cost and utilization review," means a review performed
by the state agency or its legal cost provider of the utilization and
billing practices of a contractor for the purpose of developing or
revising guidelines to be followed prospectively by the contractor in
representing the state agency.
(4) "Contract for legal service," shall include any contract
between a state agency and any law firm, professional corporation,
law firm partnership, or individual attorney to perform legal work on
behalf of the state agency.
(5) "Legal cost control provider," means any corporation,
professional corporation, partnership, or sole proprietorship which
possesses the following qualifications:
(A) Maintains an office in the state.
(B) Is authorized to do business in the state.
(C) Has existed as a legal cost control provider for at least two
complete, successive years, as evidenced by filings of tax returns.
(D) All legal cost control services are provided by attorneys.
(E) All attorneys providing the legal cost control services are
admitted to practice in this state.
(F) All attorneys have been admitted to practice in this state for
a minimum of five years prior to the performance of any legal cost
control services for any state agency.
(G) Any legal cost control provider shall maintain professional
liability insurance in the amount designated by the state agency.

(a) No person, firm, or subsidiary thereof who has been
awarded a consulting services contract may submit a bid for, nor be
awarded a contract for, the provision of services, procurement of
goods or supplies, or any other related action which is required,
suggested, or otherwise deemed appropriate in the end product of the
consulting services contract.
(b) Subdivision (a) does not apply to any person, firm, or
subsidiary thereof who is awarded a subcontract of a consulting
services contract which amounts to no more than 10 percent of the
total monetary value of the consulting services contract.
(c) Subdivisions (a) and (b) do not apply to consulting services
contracts subject to Chapter 10 (commencing with Section 4525) of
Division 5 of Title 1 of the Government Code.

(a) Each contractor shall be advised in writing on the
standard contract form that his or her performance, or the firm's
performance under the contract will be evaluated.
(b) The department shall use standardized evaluation forms and
make them available to every state agency. Each state agency shall
use post-evaluation forms to evaluate all consulting services
contracts totaling five thousand dollars ($5,000) or more.
The department shall devise standards and criteria for the
post-evaluation forms. These standardized post-evaluation forms shall
consist of a form for assessing the need and value of the consulting
services contract to the state, and a form for assessing the
usability and utility of the completed consulting services contract.

(a) Each state agency shall conduct a post-evaluation, by
completing the post-evaluation form, of each consulting services
contract totaling five thousand dollars ($5,000) or more that it
executes.
(b) The agency shall evaluate the performance of the contractor in
doing the work or delivering the services for which the contract was
awarded. The agency shall report on all of the following:
(1) Whether the contracted work or services were completed as
specified in the contract, and reasons for and amount of any cost
overruns or delayed completions.
(2) Whether the contracted work or services met the quality
standards specified in the contract.
(3) Whether the contractor fulfilled all the requirements of the
contract and if not, in what ways the contractor did not fulfill the
contract.
(4) Factors outside the control of the contractor that caused
difficulties in contractor performance.
(5) Other information the department may require.
(6) How the contract results and findings will be utilized to meet
the agency goals.
(c) If the contractor's performance was judged unsatisfactory on
any of the factors specified in subdivision (b) and was not mitigated
by circumstances specified in paragraph (4) of subdivision (b), the
evaluation shall be considered unsatisfactory for the purposes of
subdivisions (e) and (f).
(d) The post-evaluation shall be prepared within 60 days of the
completion of the contract.
(e) Post-evaluations shall remain on file at the offices of the
awarding state agency for a period of 36 months following contract
completion. If the contractor did not satisfactorily perform the work
or service specified in the contract, the state agency conducting
the evaluation shall place one copy of the evaluation form in the
state agency's contract file and send one copy of the form to the
department within five working days of the completion of the
evaluation.
(f) Upon filing an unsatisfactory evaluation with the department,
the state agency shall notify and send a copy of the evaluation to
the contractor within 15 days. The contractor shall have the right,
within 30 days after receipt, to submit to the awarding state agency
and the department, a written response statement that shall be filed
with the evaluation in the state agency's contract file and in the
department.

The evaluations and contractor responses on file with the
state agencies and the department shall not be public records. The
department shall act as a central depository for all state agencies
making evaluation or desiring information on a contractor's record
with the state and shall send a copy of any post-evaluation report
and response to the contracting manager or contracting officer of any
state agency upon request. The post-evaluations and contractor
responses shall remain on file for a period of 36 months only.
Failure by the awarding state agency to send a negative
post-evaluation to the department may be grounds for rejection of
future contracts or modification of exemptions.

The following provisions shall apply to all consulting
services contracts:
(a) Each state agency shall, regardless of the fiscal amount
involved, use available private resources only when the quality of
work of private resources is of at least equal quality compared with
the state agency operated resources.
(b) Any state agency that enters into or expects to enter into
more than one consulting services contract with the same individual,
business firm, or corporation within a 12-month period for an
aggregate amount of twelve thousand five hundred dollars ($12,500) or
more, shall notify, in writing, the department and shall have each
contract that exceeds an aggregate amount of twelve thousand five
hundred dollars ($12,500) approved by the department.
(c) Each state agency shall, prior to signing a consulting
services contract totaling five thousand dollars ($5,000) or more,
prepare detailed criteria and a mandatory progress schedule for the
performance of the contract and shall require each selected
contractor to provide a detailed analysis of the costs of performing
the contract.
(d) Except in an emergency, no consulting services contract shall
be commenced prior to formal approval by the department or, if the
department's approval is not otherwise required, by the director of
the state agency. No payments for any consulting services contract
shall be made prior to this approval of the award.
For the purpose of this subdivision an "emergency" means an
instance, as determined by the department, where the use of
contracted services appeared to be reasonably necessary but time did
not permit the obtaining of prior formal approval of the contract.
(e) No consulting services contractor shall be awarded a contract
totaling five thousand dollars ($5,000), or more, unless all of the
following apply:
(1) The state agency has reviewed any contractor evaluation form
on file with the department in accordance with Section 10369.
(2) Each state agency shall require that a completed resumé for
each contract participant who will exercise a major administrative
role or major policy or consultant role, as identified by the
contractor, be attached to the contract for public record and is made
a part of the contract.
(3) The department shall notify a state agency seeking approval of
a proposed contract within 10 working days if it has a negative
evaluation in its files on a previous contract or contracts awarded
to this contractor.
(f) The department may require special evaluation procedures for
multiyear contracts or for contracts calling for special evaluation
procedures beyond the post-evaluation.
(g) Any contract for consulting services awarded without
competition shall be listed in the California State Contracts
Register. The information contained in the listing shall include the
contract recipient, amount, and services covered. The requirement of
this subdivision shall not apply to any contract awarded without
competition executed with an expert witness for purposes of civil
litigation in a pending case.
(h) The department shall have the duty to restrict or terminate
the authority of a state agency to enter into consultant contracts if
the state agency has consistently avoided the proper preparation,
retention, or submission of post-evaluation forms, as required by
this article.

(a) The department shall ensure that all state agencies are
kept fully informed of the department's plans and procedures for
implementing the provisions of this article. The department shall
make information available on implementation procedures to all
interested parties.
(b) The department shall ensure that every consultant services
contract contains standard language that fully informs the contractor
of his or her duties, obligations, and rights under this article,
and any additional contractor rights and obligations which the
department determines should be included.
(c) Each consulting services contract shall have a provision for
settlement of contract disputes.